Enterprise Oil Limited
TSX VENTURE : EON

Enterprise Oil Limited

March 21, 2007 12:05 ET

Enterprise Oil Limited Announces Pricing of $10 Million Private Placement

ST. ALBERT, ALBERTA--(CCNMatthews - March 21, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO US NEWSWIRE SERVICES.

Enterprise Oil Limited ("Enterprise" or the "Company"), (TSX VENTURE:EON) is pleased to announce that it has priced the previously announced private placement of units for gross proceeds of $10 million at a price of $0.75 per unit (the "Offering"). Each unit will consist of one common share and one-half common share purchase warrant (a "Unit"). Each whole warrant will entitle the holder to acquire one common share of the Company at a price of $1.00 at any time for a period of 15 months from the closing of the Offering.

Paradigm Capital Inc. is acting as agent on a best-efforts basis in respect of the placement. Closing is scheduled for March 29, 2007 and is subject to receipt of all required regulatory approvals including the approval of the TSX Venture Exchange. All securities issued pursuant to the Offering will be subject to the applicable statutory, exchange and regulatory hold periods.

This press release is not an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements.

Proceeds from the funding will be used to close the directional boring acquisition announced February 5, 2007, for general corporate purposes and to pursue other acquisitions. The directional boring company has operated for over 30 years and generates most of its revenue from utility companies with approximately 20% from the energy services sector. Installation of underground utilities such as electrical, telecommunications and natural gas lines are the core business of the company. The acquisition target's customers include some of Canada's largest providers of telecommunications, cable TV, electricity, and natural gas services. This acquisition brings to Enterprise a range of new customers, non seasonal revenue diversification and significant growth opportunities while delivering over $5 million per year in EBITDA based on the previous year's financial results.

Enterprise Oil Limited is a construction services company. Its focus has been the pipeline construction industry primarily installing steel gathering systems up to 12" in diameter. The company's strategy is to expand its construction services to include directional boring and increase its customer base outside the energy services sector. The company will continue its strategy to acquire small to mid size construction services companies in central and northern Alberta, consolidating capital, management and human resources to support continued growth.

Forward Looking Statements

This press release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitation, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release

Contact Information

  • Enterprise Oil Limited
    Leonard D. Jaroszuk
    Pres/CEO
    (780) 418-4400 or Toll Free: 1-888-303-3361
    or
    Enterprise Oil Limited
    Desmond O'Kell
    Vice President - Corp Dev
    (780) 418-4400 or Toll Free: 1-888-303-3361
    Email: contact@EnterpriseOil.ca
    Website: www.EnterpriseOil.ca